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Levels to watch: FTSE, DAX and S&P 500

US markets move ever upwards, while in Europe the DAX is looking to make a firm push above 12,000.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-02-23T09:42:06+0000

DAX

Source: Bloomberg

FTSE 100 getting ready for another run higher?

The index has been stuck in consolidation mode for over a week, with a push towards 7320 fizzling out, but no sign of a real move lower.

The price has drifted through the rising trendline that held from 2-21 February, but support at 7260 is still to be tested. If the price can move back above 7300, it may be that a run to 7320 and higher is in the offing.

FTSE chart

FTSE chart

FTSE chart

DAX pushing up

Having stumbled yesterday the index is now looking to move above 12,000 and push on to 12,048. The next area to watch would be 12,108 if gains continue. For this index, the uptrend line now lies below 11,850, so we could see a significant unwind here, and still be in a technical uptrend.

At present risk-reward seems skewed intraday to the downside, but a dip to 11,900 or even lower could provide an attractive entry point for longs.

DAX chart

DAX chart

DAX chart

S&P 500 still moving higher

US markets continue their glide-path higher. The S&P 500 has yet to push beyond Tuesday’s peak at 2367, but the direction of travel remains firmly higher.

We would need to see a move below 2340 to suggest the rally has run its course. Short-term support lies at 2356, and then at 2351, as the steady progression of higher highs and higher lows continues.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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